The Federal Reserve Bank of New York fixed the loonie at 98.75 cents (U.S.) at noon on Wednesday. That's the lowest value for Canadian currency since Sept. 19, when it stood at 98.55 cents (U.S.).

The loonie achieved parity with the U.S. dollar on Sept. 20, the first time since 1977 that both currencies had been equal in value. It continued to gain until Nov. 7, when it peaked at $1.10 (U.S.).

Analysts trace the current decline to Tuesday's decision by the Bank of Canada, the nation's central bank, to cut its key overnight rate by 25 basis points. Lower interest rates generally make currency less attractive to investors.

The loonie's fate is closely watched in parts of New York that border Canada since any upswing in Canadian currency is a positive development for New York retailers and exporters.

The recent rise in the loonie's value has triggered an influx of bargain-hunting Canadian shoppers to New York malls.

Companies based in Canada, on the other hand, experienced a decline in exports to the United States as Canadian currency gained against the American dollar.

The Federal Reserve Bank of New York certifies foreign currency rates each weekday at noon, Eastern Time, for use by the U.S. Customs Service.